The consumer price index (CPI) increased by 0.2% last month, following a 0.1% decline in June, as reported by the Labor Department’s Bureau of Labor Statistics. Over the 12 months ending in July, the CPI rose by 2.9%, compared to a 3.0% increase in June.
US consumer prices rebounded as expected in July, but the trend remained consistent with subsiding inflation and did not change expectations that the Federal Reserve will cut interest rates next month.
The consumer price index increased 0.2% last month after falling 0.1% in June, the Labor Department’s Bureau of Labor Statistics said on Wednesday. In the 12 months through July, the CPI increased 2.9% after advancing 3.0% in June.
Economists polled by Reuters had forecast the CPI increasing 0.2% on the month and rising 3.0% year-on-year. The government on Tuesday reported a mild increase in producer prices in July.
Annual consumer price growth has moderated considerably from a peak of 9.1% in June 2022 as higher borrowing costs cool demand. While still elevated, inflation is moving towards the U.S. central bank’s 2% target.
The odds of a rate cut at the Fed’s Sept. 17-18 policy meeting are split between half a percentage point and 25 basis points. The rate pricing mostly reflects a jump in the unemployment rate to near a three-year high of 4.3% in July.
Economists, however, contend that for the central bank to implement a 50 basis point rate reduction, the labor market would need to experience significant deterioration. The jobless rate has risen for the fourth consecutive month, with this increase primarily attributed to a rise in labor supply due to immigration, rather than being driven by layoffs.
Feds benchmark overnight interest rate in the current 5.25%-5.50% range for a year, increased by 525 basis points in 2022 and 2023.
eliminate the food and energy components, the CPI rose 0.2% in July after rising 0.1% in June. In the 12 months through July, the core CPI advanced 3.2%. That was the smallest year-on-year increase since April 2021 and followed a 3.3% gain in June.
Related posts:
Union Finance Minister Smt. Nirmala Sitharaman chairs the review meeting of the Regional Rural Banks (RRBs) in New Delhi, today
APSPDCL installs the state’s first high-tension and low-tension smart meters for the government sector.
Did you incorrectly claim a deduction on your ITR? The Income Tax Department requires employees to correct the mistake and pay any outstanding tax, or face potential penalties.
US Fed must go big with 50 bps interest rate cut in September or risk recession
Is 53% DA from 1st July 2024 Truly Keeping Up with Inflation? The Lowest Rate in 5 Pay Commissions!
Latest Income Tax Slabs and Rates for FY 2023-24 (AY 2024-25)